Future of Work Technology
M&A and Investment Report
In face of the unique challenges created by Covid-19, organizations turned to technology for business continuity, employee support and workplace productivity. The newly-ushered urgency for technology adoption shortened implementation cycles and supported the top-line growth of Work Tech businesses globally.
While uncertainty remains, the sector’s resilience amidst an exceptionally difficult macroeconomic environment is the clearest demonstration yet of Work Tech’s importance to clients of all sizes. Undoubtedly, the current wave of digital acceleration has introduced workplace tools, norms and automation that will outlast the pandemic.
Going forward, we see the sector exiting a period of rapid innovation and entering a period of growth and consolidation. Many of the hundreds of Work Tech businesses launched in the last 5 years are now beginning to achieving scale and even reach unicorn status. A lot of them attract the backing of private equity in support of both organic and inorganic expansion. Meanwhile, strategic acquirers are meticulously building out their product portfolios through targeted acquisitions.
We call this “the great consolidation” and we expect it will have widespread implications for Future of Work businesses, at least until the next wave of disruptive innovation arrives.